To: Board of County Commissioners
Through: Ben Colussy, Retirement Plan Administrator, Human Resources
Prepared By:
prepared
Ben Colussy, Retirement Plan Administrator, Human Resources
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presenter
Presenter: Rich Harris, Chairman of Retirement Board; Dana Woolfrey, Gabriel Roeder Smith and Co., Plan Actuary; Cindy Birley, Davis Graham and Stubbs, LLC, Plan Attorney; and Ben Colussy, Retirement Plan Administrator, Human Resources
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Subject:
title
3:00 PM *Vesting Requirement for the Defined Benefit Plan
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Purpose and Request:
recommended action
The Board is requested to provide feedback on the proposal to adjust the vesting requirement for the County's retirement plan from an eight-year to a five-year requirement.
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Background and Discussion: Vesting under the existing Defined Benefit Plan currently requires an eight-year cliff vesting period. This means Arapahoe County employees are eligible to receive a monthly lifetime benefit once you reach the plan's retirement age and have separated service. It is important to note that even after vesting, there is no guarantee you will receive the County contributions made into the plan. Adjusting the current eight-year cliff vesting period, which is longer than the typical five-year cliff vesting period among public retirement plans, would have two key financial implications:
1. Increase the plan liability by $20,000, and
2. Increase the Normal Cost of the plan by .01%.
Human Resources believes a change to plan vesting could positively impact the recruitment of entry-level to lower management positions (with approximate pay ranges of $40,000 to $80,000) and make the County more competitive with other counties and municipalities.
During the study session, the Plan Actuary will discuss the financial impact of changing the vesting period in more detail. The Plan Attorney can explain why previous Retirement Boards have not changed the vesting period. The Chairman of the Retirement Boar...
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